Mumbai: The Reserve Bank Friday said it will inject Rs 40,000 crore into the system in November through purchase of government securities as it looks to meet festive season demand for funds.
"Based on an assessment of the durable liquidity needs going forward, RBI has decided to conduct purchase of Government securities under OMOs for an aggregate amount of Rs 400 billion in the month of November 2018," the central bank said in a release.
It further said the auction dates and the government securities to be purchased in the respective auctions would be communicated in due course.
"The OMO amount stated … is indicative and RBI retains the flexibility to change it, depending on the evolving liquidity and market conditions," it added.
The Reserve Bank of India (RBI) had earlier stated that the system liquidity will move into deficit in the second half of 2018-19 and the evolving liquidity conditions would determine its choice of instruments for both transient and durable liquidity management.